The following information is for the Furbee Manufacturing Company for November. Inventories Beginning Ending Raw Material P19,750 P15,400 Work in Process 35,350 32,200 Finished Goods 21,300 27,900 Direct Labor (22,000 DLH @ P14) Raw Material Purchases P155,000 Insurance-Office 2,750 Indirect Labor 11,600 Office Supplies Expense 1,050 Factory Supplies Used 475 Insurance-Factory 1,825 Other Expenses: Depr. Office Equipment 3,900 Depr.-Factory Equipment 18,100 Repair/MaintenanceFactory 7,800 Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold in good form.
The following information is for the Furbee Manufacturing Company for November. Inventories Beginning Ending Raw Material P19,750 P15,400 Work in Process 35,350 32,200 Finished Goods 21,300 27,900 Direct Labor (22,000 DLH @ P14) Raw Material Purchases P155,000 Insurance-Office 2,750 Indirect Labor 11,600 Office Supplies Expense 1,050 Factory Supplies Used 475 Insurance-Factory 1,825 Other Expenses: Depr. Office Equipment 3,900 Depr.-Factory Equipment 18,100 Repair/MaintenanceFactory 7,800 Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold in good form.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 8P: OReilly Manufacturing Co.s cost of goods sold for the month ended July 31 was 345,000. The ending...
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1. The following information is for the Furbee Manufacturing Company for November.
Inventories
Beginning
Ending
Raw Material
P19,750
P15,400
Work in Process
35,350
32,200
Finished Goods
21,300
27,900
Direct Labor (22,000 DLH @ P14)
Raw Material Purchases
P155,000 Insurance-Office
2,750
Indirect Labor
11,600 Office Supplies Expense
1,050
Factory Supplies Used
475 Insurance-Factory
1,825
Other Expenses:
Depr. Office Equipment
3,900
Depr.-Factory Equipment
18,100 Repair/MaintenanceFactory
7,800
Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold in
good form.
2. The following information was taken from the records of the Slidell Corporation for the
month of July. (There were no inventories of work in process or finished goods on July 1.)
Units
Cost
Sales during month
8,000
P ?
Manufacturing costs for month:
Direct material
32,000
Direct labor
20,000
Overhead costs applied
15,000
Overhead costs under-applied
800
Inventories, July 31:
Work in process
1,000
?
Finished goods
2,000
?
Indirect manufacturing costs are applied on a direct labor cost basis. The under-applied balance
is due to seasonal variations and will be carried forward. The following cost estimates have been
submitted for the work in process inventory of July 31: material, P3,000; direct labor, P2,000.
Required:
a. Determine the number of units that were completed and transferred to finished
goods during the month.
b. Complete the estimate of the cost of work in process on July 31.
c.
Compute cost of goods manufactured for the month.d. Determine the cost of each unit completed during the month.
e. Determine the total amount debited to the Overhead Control accounts during the
month.
3. Classify the following costs of activity inputs as variable, fixed or mixed.
a. Flu vaccine
b. Salaries, Equipment, and materials used for moving materials in a factory
c. Forms use to file insurance claims
d. Salaries, forms, and postage associated with purchasing
e. Printing and postage for advertising circulars
f. Equipment, labor, and parts used to repair and maintain production equipment
g. Power to operate sewing machines in a clothing factory
h. Wooden cabinets enclosing audio speakers
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